Economists generally assume that a consumer
A)consumes until marginal utility is equal to zero.
B)consumes until total utility is equal to zero.
C)maximizes her marginal utility given her budget constraint.
D)maximizes her total utility given her budget constraint.
E)minimizes her spending given her budget constraint.

Question

Quizplus · Accepted Answer

Economists assume that consumers aim to maximize their total utility within their budget constraints, choosing combinations of goods and services that provide the highest satisfaction.

Economists Generally Assume That a Consumer